Fuel price rises in Abuja and Kano to between N171 and N177 per litre
By Jeph Ajobaju, Chief Copy Editor
Fuel price now costs between N171 and N177 per litre in Abuja and Kano, riding on artificial scarcity triggered by the demand by the Nigerian Ports Authority (NPA) for payment in dollars for logistics and shipping services rendered marketers.
The Nigerian Maritime Administration and Safety Agency (NIMASA) has also made the same demand, which compels marketers to sell above the official price of N146, N147 and N148 per litre.
Marketers source foreign exchange (forex) from the black market to pay the charges, Faruk Ahmed, the new Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPR), confirmed after a meeting with President Muhammadu Buhari in Abuja.
“They have to go to the black market to source for US dollars. And that differential between the official and the black market they buy is why they added about N9 to N10 to N15 [per litre] and it depends on whether you are in Lagos, Calabar, Port Harcourt or Ogara,” Ahmed said, reported by PREMIUM TIMES.
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Fuel queues
Ahmed disclosed that oil marketers have held a meeting with officials of the NPA, NIMASA, and the Nigerian National Petroleum Corporation (NNPC).
“We all agreed and resolved that NNPC excess capacity of shipping their vessels will be chartered to all marketing companies will be charging in naira so that NNPC now will go and source for converting US dollars through the CBN.”
Fuel queues have returned to cities with motorists finding it difficult to buy the product as many filling stations are closed or operate partially.
Scarcity came amid reports of likely general price increase by marketers even though the NNPC has denied the government plans a hike.
Abuja residents said they rely on the black market for petrol to power their cars and power generators.
There are long fuel queues in Kano where most filling stations are closed. Only a few sell at the official price of N165 per litre.
NNPC confirms fuel in stock
The NNPC gave an assurance in early November that there would be no hike in petrol price and stressed there was no reason for panic-buying.
NNPC Group General Manager (Public Affairs Division), Garba Muhammad, confirmed in a statement that more than 1.7 billion litres of petrol were in stock with greater supply expected in the weeks ahead.
Ahmed said there is an understanding on NIMASA and NPA charges that marketers will contact their supervising ministry for direction on payment in naira instead of dollars, adding that engagement has begun.
He disclosed that the NNPC has converted to charging naira rather than dollar for excess capacity charter to all marketing companies.
“I believe with this there will be no reason for the depot owners to increase their price beyond the official selling price of N148.”
